The Ofgem fund is part of the electricity distribution price control arrangements implemented from 1 April 2010, according to the company.

The fund will ultimately contribute a total of up to £500m for large-scale projects sponsored by the distribution network operators (DNOs) to pilot new technology, operating and commercial arrangements.

The projects will help all DNOs make understand the things they need to do to accommodate the developments likely to take place as UK moves to a low carbon economy.

Scottish Hydro Electric Power Distribution made the bid for the Shetland project, ‘Northern Isles New Energy Solutions’ (NINES).

The project, which involves funding from the European Regional Development Fund, the Department for Energy and Climate Change and SSE as well as the LCNF, will seek to increase and optimize the amount of renewable energy flowing on Shetland’s network.

Southern Electric Power Distribution made the bid for the Bracknell Project, ‘Thames Valley Vision’ (TVV).

The project involves funding from GE, Thames Valley Consumer Consortium, Bracknell Forest Council, Bracknell Forest Homes, University of Reading and energy suppliers.